Bahrain says it has uncovered a 'terror cell' being funded by the Lebanese militia group Hizbollah. Mahmoud Zayyat / AFP

The Bahraini authorities have arrested four people accused of “engaging in terrorist activities” and of being funded by the Lebanese Hizbollah group.

Ahmed Al Hammadi, terror crime prosecution chief, said an investigation uncovered an organisation with the aim of undermining the law, hampering the work of government and harming national unity.

“It engaged in terrorist activities to carry out acts of terrorism [in] Bahrain … targeting police and civil servants, taking part in illegal rallies, sabotaging private property and disseminating fake news to undermine national security,” he said, according to the Bahrain News Agency.

One of the suspects established the Manama Observatory for Human Rights, which “the investigation revealed was a cover to support acts of terrorism”, said Mr Al Hammadi.

He added that each of the four members was designated to carry out a certain job, such as mobilising crowds for illegal rallies, under the guise it was being done to have human rights demands met.

The investigation also showed that the organisation was being funded by Hizbollah, which is backed by Iran, reported the Bahrain News Agency on Tuesday night.

A Bahraini national residing in Lebanon had been co-ordinating between the Lebanese Shiite militia and the Bahrain-based organisation, said the report.

It added that the investigation showed Hizbollah was funding and support a number of people belonging to “so-called” human rights organisations to send false reports on Bahrain, Saudi Arabia, and the UAE.